US Jobs Data and USD Impact💱 Forex•USD/JPY

Strong US Jobs Data Boosts USD, Trims Fed Rate Cut Bets

February 12, 2026, 06:03 AM164 words10 sourcesAI-Generated · Reviewed by editorial team
USD/JPY
Strong US Jobs Data Boosts USD, Trims Fed Rate Cut Bets

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Recent US jobs data has significantly impacted currency markets, primarily strengthening the US Dollar (USD). January's Nonfarm Payrolls (NFP) came in at 130,000, exceeding expectations of 70,000, fueling a bullish bias for the USD against currencies like the Euro and British Pound. This strong data has led traders to reduce bets on a March rate cut by the Federal Reserve, pushing back expectations for the first reduction to July. Consequently, the EUR/USD pair has weakened, while USD/JPY and USD/CAD have seen bullish momentum. The US 10-year Treasury yield also rose, reflecting diminished expectations of near-term easing. However, the US Dollar Index experienced some losses due to earlier weaker retail sales data and comments from White House advisors. Despite the strong NFP, gold prices held firm above $5,000, benefiting from ongoing demand. Societe Generale analysts suggest the risk remains skewed towards softer data, potentially triggering a more dovish repricing of the Fed's stance. Overall, the market is adjusting to a potentially less dovish Fed policy.

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